Mid-Week Market Minute 11.22.23

Markets Extend Strong November Returns in Short Week

Stocks around the globe continued to rally in this holiday-shortened week as markets extended strong November returns for the major indices. In the U.S., both large cap stocks (S&P 500 index) and the small cap index (Rusell 2000) are up around 8% for the month. Bond returns have been strong as well for November, with the yield on the 10-year briefly falling to its lowest point in more than two months. As of mid-day Wednesday, the yield on the 10-year Treasury was 4.44%, down from 4.87% at the beginning of the month.

Investors are optimistic the Federal Reserve has finished their rate-hiking campaign, as economic data shows the labor market losing momentum with both headline and core inflation continuing a downward trend. The latest Fed minutes released last week mentioned higher yields would restrict economic activity and support the decision to hold rates steady. Although the Fed has not completely ruled out further rate hikes, the minutes made it clear the Fed is taking a cautious approach and will continue to evaluate incoming data to determine how long short rates will remain at the current level of 5.25%-5.50%.

Source: GSAM, CNBC, JPMorgan

This communication is for informational purposes only. It is not intended as investment advice or an offer or solicitation for the purchase or sale of any financial instrument.

Indices are unmanaged, represent past performance, do not incur fees or expenses, and cannot be invested into directly. Past performance is no guarantee of future results.